As of June 30, 2012, we have received approximately $13.3 million from the OCS under the incubator agreement to fund 22 different development projects, 17 of which have terminated. Of our 15 current development projects, six have been funded under the incubator agreement: BL-1021, BL-1040, BL-5040, BL-6030, BL-7020 and BL-7050. Other projects may also be funded by the OCS outside of the incubator agreement. As of June 30, 2012, the OCS approved funding for BL-7040 outside the incubator agreement.

Israel Ministry of Health

Israel’s Ministry of Health, which regulates medical testing, has adopted protocols that correspond, generally, to those of the FDA and the European Medicines Agency, making it comparatively straightforward for studies conducted in Israel to satisfy FDA and the European Medicines Agency requirements, thereby enabling medical technologies subjected to clinical trials in Israel to reach U.S. and E.U. commercial markets in an expedited fashion. Many members of Israel’s medical community have earned international prestige in their chosen fields of expertise and routinely collaborate, teach and lecture at leading medical centers throughout the world. Israel also has free trade agreements with the United States and the European Union.